Consumers are increasingly incorporating plant-based functional beverages into their daily lives, hoping that their daily drinks will help relieve stress, promote relaxation and improve mood. Plant-based ingredients are a key trend in the industry's development.
Data shows that the global plant-based food and beverage market is expected to reach US$38.4 billion by 2025. According to Reseach and Markets, the global functional beverages are forecast to grow at a CAGR of 8.66% from 2019 to 2024, with Asia Pacific being the fastest growing market for functional beverages. With many companies recognising the boom in these two markets, it is not surprising that they are combining them.
Accordingly, consumer interest in plant-based ingredients has surged and new consumer preferences have enabled plant-based ingredients to stand out in the beverage market. Botanical ingredients in soft drinks continue to attract new brands to develop products, and natural, green, healthy and environmentally friendly botanical functional drinks with specific benefits have become the 'new favourite' in the beverage industry.
Hibiscus, for example, is popular for its fresh, subtle acidity and vibrant red hue, and is becoming increasingly popular in beverage formulations. It is one of the best performing plants and is a versatile ingredient used in a variety of beverages including hot tea, iced tea, carbonated water and cocktails.
The beauty drinks category is also beginning to capitalise on the plant's health properties. For example, roses are increasingly being used in beauty drinks because they are rich in antioxidants such as flavonoids and anthocyanins, which protect against free radical damage, which accelerates skin ageing. Consumption of such beverages can improve skin hydration, reduce wrinkles, fade dark spots and even shrink pores.
In addition, other botanical ingredients such as turmeric also benefit from this trend. Turmeric is a member of the ginger family and curcumin, extracted from turmeric, is believed to have powerful antioxidant, lipid-lowering, anti-cancer and anti-inflammatory effects, as well as improving skin health, better digestive support and increasing energy.
Turmeric is very diverse and growing in terms of product innovation in a number of areas, including food and beverages. From 2014 to 2018, global new product launches related to it grew at an average annual rate of 41%. The variety of new products that use turmeric as a selling point has not only attracted many consumers to plant their seeds, but has also led many businesses to turn to turmeric as a growth strategy.
Plant-based functional drinks started out as a niche market, but have now swelled into a large market for the industry. As people's living standards improve, the market for plant-based functional beverages will have an increasingly large consumer demand and consumption space. This market continues to expand as time goes on.
